S-5198-119
Read twice and referred to the Committee on Commerce, Science, and Transportation.
Sponsored by Todd Young (R-IN)
What it does
This bill would reauthorize the Commerce Department's regional innovation grant program (the "Build to Scale" program) through fiscal year 2030, authorizing $50 million per year. It would add a new program goal of increasing access to capital for innovation-based businesses, revise the definition of eligible "venture development organizations," adjust federal cost-share rules for grants, and expand outreach requirements to rural, trade-impacted, and economically distressed communities.
Who benefits
Regional economic development organizations, universities, and nonprofit venture development organizations that apply for these grants; entrepreneurs and startups in rural areas, trade-impacted communities, and economically distressed regions targeted by the outreach provisions; state and local governments partnering on innovation initiatives.
Who is hurt
No group is directly harmed, though taxpayers fund the $50 million annual appropriation, and regions or organizations that do not qualify as "venture development organizations" or fall outside targeted distressed/rural categories may receive relatively less support compared to eligible areas.
Supporters argue
Supporters argue that regional innovation grants help startups and small businesses in underserved areas access capital and technical support that coastal tech hubs already have, closing a geographic gap in America's innovation economy. They contend the program's track record justifies renewed funding, and that provisions targeting rural and trade-impacted communities ensure the benefits reach areas with fewer existing resources.
Opponents argue
Opponents argue that federal grant programs for regional economic development often struggle to demonstrate measurable returns and may fund initiatives that private capital markets would otherwise support without subsidy. They contend that shifting the program from discretionary ("may" fund) to mandatory ("shall" fund) language reduces agency flexibility to redirect resources toward higher-performing initiatives, even as its cost is fixed at $250 million over five years.